Hiring top talent is a challenge within itself, but what do you do with those employees once you get them on board? Priorities will center on maintaining and grooming employees for a successful career with your company. Achieving this is possible with a well-thought-out performance management system that thoroughly addresses the relationship between employee performance and company performance. Here are five best practices that your company can integrate as part of a successful performance management process.
Keep Communication Ongoing
Employees and management should always have an ongoing dialogue about performance. Deal with any potential trouble areas immediately in order to encourage a successful outcome in the future. Feedback should not be designated as a one-time annual event.
Educate Management on Performance Review Pitfalls
Managers may be blissfully unaware of certain pitfalls that occur during reviews. For instance, managers may rank an employee higher based on a certain trait rather than objective measures; this is also known as the Halo Effect. Or managers may rank all employees approximately the same without any real differentiation. Also, be sure that management is aware of what not to do or say during performance reviews. Train supervisors on any
applicable labor laws.
Link Performance Management to Company-Wide Initiatives
Make sure to tie your business goals and values into your system. If you want your employees to focus on goals that actually impact profits, then include them in performance appraisals. Linking to company-wide initiatives makes employees aware of how their contributions impact the business’s overall success.
Reward Good Performance
Everyone wants recognition for a job well done. Of course, feedback should point out areas needing improvement, but no one wants to hear the bad all the time. Reinforce positive behavior and actions by rewarding employees accordingly. Show that you don’t just notice the problems, but appreciate your employees when they do something right.
Utilize 360 Feedback
Feedback isn’t just a job for managers anymore. Get everyone who works with the employee involved in providing constructive criticism or giving praise where it’s deserved. This also gives the employee an opportunity to evaluate management. This encourages a more open and honest culture where even top players are held accountable for the company’s success.
